Sierra Protocol Launches First-Ever Liquid Yield Token (LYT) on Avalanche Powered by OpenTrade

• As soon as a user purchases SIERRA, yield starts to accumulate instantly. In contrast to many other LYTs, there are no hidden fees, lockups, minimums, or staking restrictions to earn yield.
• By managing processes for each of Sierra’s yield sources via a single protocol, the OpenTrade platform is able to abstract the complexity of the operational process.

SIERRA, a brand new Liquid Yield Token (LYT) that is the first of its type, has been launched on the Avalanche network, according to an announcement made by Sierra Protocol. In the Sierra web app or on LFJ (previously Trader Joe), the biggest decentralized exchange on Avalanche, users may now gain permissionless access to SIERRA tokens by exchanging USDC directly with any wallet of their choosing. This allows users can acquire access to SIERRA tokens without any restrictions. As soon as a user purchases SIERRA, yield starts to accumulate instantly. In contrast to many other LYTs, there are no hidden fees, lockups, minimums, or staking restrictions to earn yield.

Since LYTs are not directly pegged to the United States Dollar or any other fiat currency, they differ from yield-bearing stablecoins. LYTs, on the other hand, are supported by stablecoin reserves, which result in yield that is distributed to holders of LYT. SIERRA is the only company to have a diverse portfolio of yield producing reserves that includes both investment-grade RWAs and blue-chip DeFi protocols. This is an innovation that SIERRA brings to the table in comparison to other LYTs.

According to Sierra’s Risk Framework, the portfolio of reserves that support SIERRA is constantly rebalanced in response to shifting market circumstances. This is done in order to reflect the reality of the situation. Using the website, a CSV download, or the API, users are provided with free access to extensive data that may assist them in making informed choices. The Transparency Dashboard of SIERRA offers real-time insights into critical parameters. Taking everything into consideration, SIERRA provides users of DeFi with an innovative method to earn risk-adjusted profits in a passive manner by means of a token that is self-custodial and widely accessible.

By using investment-grade RWAs and blue-chip DeFi protocols, Sierra is able to implement its flexible reserves management approach. This is made possible by the collaboration that Sierra has with OpenTrade. Sierra is able to distribute reserves in a smooth manner across RWA revenue sources like as U.S. Treasury money market funds and investment-grade commercial paper, as well as DeFi protocols such as AAVE, Morpho, Euler, Wildcat, and Pendle, thanks to the institutional-grade stablecoin ‘yield-as-a-service’ infrastructure that is provided by OpenTrade.

By managing processes for each of Sierra’s yield sources via a single protocol, the OpenTrade platform is able to abstract the complexity of the operational process. Furthermore, by utilizing institutional-grade processes, it enhances the security of Sierra’s platform. This is because all RWA collateral is stored in secured accounts with Tier 1 financial institutions and is managed by an asset manager that is regulated by the Financial Conduct Authority (FCA). Additionally, all DeFi vaults utilize the whitelisting and policy-enforcing features of Fireblocks for the custody of cryptoassets.

Mitchell Nicholson, Core Contributor of the Sierra Protocol said: “We’re very excited about the launch of SIERRA after many months of planning and building. We believe Sierra’s flexible reserve management strategy, combined with dynamic rebalancing capabilities, make SIERRA a unique offering that many DeFi users will prefer holding. We look forward to announcing many partnerships over the coming weeks that provide SIERRA with enhanced utility across both DeFi and CeFi.”

Dave Sutter, CEO of OpenTrade added: “We’re proud that Sierra has chosen OpenTrade as the technical foundation to build such an innovative protocol as part of the fast-growing DeFi ecosystem. The simplicity, transparency and composability of Sierra represents a fresh approach to liquid yield tokens. Seeing the unique way Sierra utilizes OpenTrade’s institutional-grade infrastructure makes supporting its future growth so exciting. We look forward to continuing to support Sierra and its ecosystem for a long time to come.”

“Sierra’s launch on Avalanche shows how DeFi and real-world assets can work together,” said Eric Kang, Head of DeFi at Ava Labs. “By building on OpenTrade’s infrastructure, Sierra makes earning on-chain yield simple, transparent, and accessible to anyone.”

The SIERRA token, which is issued by Sierra as a Liquid Yield Token (LYT), is designed to provide the greatest possible user experience across DeFi, CeFi, and TradFi. Sierra is reimagining money. Moreover, SIERRA holders are able to experience a new kind of money that is widely accessible, self-custodial, transparent, and rising in value via intrinsic yield. This is in contrast to the traditional methods of dealing with hidden fees, banking delays, and price inflation. Users are able to earn a return that is the highest in the industry by holding SIERRA. This yield is compounded everyday and does not involve any lock-ups, hidden fees, or obligations to stake or collect rewards.

As an institutional-grade platform, OpenTrade offers real world asset-backed lending and stablecoin yield products. These products are supported by a suite of high-quality on-chain and real world financial assets that deliver predictable risk-adjusted returns. OpenTrade is a provider of stablecoin yield products. OpenTrade is a platform that has been built to enable any company to power their own stablecoin yield products for their users. These users can have faith in OpenTrade’s enterprise-grade technology systems, as well as the security guarantees of our time-tested legal protections and bank-grade asset management operations. OpenTrade has received backing from investors such as a16z Crypto and Circle.